Ripple News Update
As Ripple enters its first week above $0.70, trading volumes started to recede beneath $1.0 billion. This could pose some problems down the road.
High trading volumes are generally associated with ascending prices, or at least that’s been our observation of crypto markets. It’s one of the metrics we look for, and believe me, it’s served our readers extremely well.
For example, when XRP was languishing at $0.20, we recommended that investors pay attention to rising volumes. These were, we said, an important signal for the currency.
We also pointed out that Ripple had locked up 55 billion XRP, opened a payments corridor for American Express Company (NYSE:AXP), and opened offices in Singapore and India.
What happened then, do you think? Prices shot up from $0.24 to $0.86 in five days.
There was a minor retracement over the weekend. However, yesterday marked the first time in nearly a week that trading volumes dipped below $1.0 billion. Investors only swapped $805.2 million XRP.
Ripple Price Chart:
What does this mean? Will prices crash?
Relax. The situation is not that dire. This was a single data point, and a single data point does not constitute a trend.
Moreover, the 24-hour gauge on trading volumes jumped up to $1.12 billion at the time of writing. So I wouldn’t panic just yet if I were you.
Also, it was encouraging that XRP prices held above $0.70 the entire weekend. This means that falling volumes didn’t come in a landslide, but rather, in small increments.
It looks less like a few “whales” exiting with their millions in profit and much more like retail investors extracting a small portion of their gains.
We continue to believe that XRP can hit $1.00 before the year is out. Meanwhile, our $2.00 Ripple price prediction for 2018 remains unchanged.